SUSTAINABILITY
ALLIANCES AND DIALOG

3.1

SUSTAINABILITY STRATEGY

It is clear to us that we can make a difference in business, so we evaluate our activities in relation to the specific contributions we can make to the achievement of the Sustainable Development Goals (SDGs) established by the United Nations. To do this, we use different activities and tools, such as the SDG Compass, the identification of objectives and goals in different meetings with referents from the areas of the Company and the Board of Directors, and the Principles of Sustainable Agriculture and Business. The following results were obtained from these processes:

GRI 102-11, 102-12, 102-13, 102-21, 102-27, 102-33,
102-34, 102-40, 102-42, 102-43, 102-44

Pillars

Material
issues

Objectives

Programs

SDG
Priority

AGRICULTURA
SUSTENTABLE

SUSTAINABLE
AGRICULTURE

Temas materiales

• Sustainable Agriculture

Objetivos

Offer products and solutions that improve the sustainability of productive systems.

Disseminate Nutrition Management Best Practices (NMBP) of crops and the care of the soil in the different regions of the country.

Programas

• Innovation Model and MIT technology
• Miting
• Profertil Excellence And Technical Excellence
• Prosuelos
• Zonal tours
• Distributor conferences
• Application MIT

ODS
Prioritarios

EDUCACIÓN

EDUCATION

Temas materiales

• Relationship with the Community

Objetivos

Increase social investment rate.

Extend the geographic outreach and the benefits of the Scholarship Program, Huertas (Vegetable Garden) Program, Patios Productivos (Productive Patios) Program and Creciendo en Comunidad (Growing in the community) Program.

Programas

• Huerta (Vegetable Garden) Program
• Support to educational organizations
• Creciendo en Comunidad (Growing in community) Program
• Scholarship program
• Art Workshop

ODS
Prioritarios

TRABAJO Y
DESARROLLO
SOCIAL

LABOR AND SOCIAL DEVELOPMENT

Temas materiales

• Labor Practices, Health and Safety

Objetivos

Reach 25% of women in the payroll and 20% in leadership roles.

Work on prevention to prevent injuries and accidents, keeping an LTI lower than 1.

Programas

• Diversity and inclusión manifesto
• ISO 45001
• SEDRONAR Certification

ODS
Prioritarios

DESARROLLO
DE LA
COMUNIDAD

COMMUNITY DEVELOPMENT

Temas materiales

• Indirect economic impact

Objetivos

Strengthen sustainable management in local vendors.

Programas

• Focus on local suppliers and local labor

ODS
Prioritarios

EFICIENCIA
AMBIENTAL

ENVIRONMENTAL EFFICIENCY

Temas materiales

• Energy, emissions, water, and effluents

Objetivos

Reduce 6% the specific power consumption of the process (electricity and natural gas).

Reduce 5% of direct emissions of greenhouse effect gases per ton of urea produced and 60% of the emissions of Scope 2 greenhouse effect gases, per ton of urea produced, supplying 60% of the plant electrical consumption as of renewable sources.

Identify water specific consumption reduction projects and its reutilization by 2022.
Promote the production of Ammonia from green H2.

Programas

• Management Integrated System
• ISO Standards Certification

ODS
Prioritarios

PRINCIPLES OF SUSTAINABLE AGRICULTURE AND BUSINESS

When a plant grows, it takes from the soil the nutrients it needs to develop. All crops need those nutrients; they are their essential constituents. For this reason, the soil must replenish them repeatedly. The world population is constantly increasing (today we are about 7 billion people), but the arable land is always the same. Therefore, we need the same land to produce more and more food. Nutrients, such as granulated urea, fertilize. Moreover, fertilization helps the land to recover from the effort made in the previous production cycle and to generate a larger number of crops. These well nurtured crops
are better able to withstand harsh weather conditions and produce higher quality food. The challenge of Sustainable Agriculture is to increase food production in an economically feasible way, while maintaining the ecological integrity of food systems.

In this sense, both governments and companies must assume a decisive role in implementing effective and scalable solutions both to achieve a sustainable agricultural industry and to guarantee a safe food chain. In 2014, the United Nations Global Compact unveiled the Business Principles for Sustainable Agriculture2 whose purpose is to contribute to the achievement of the Sustainable Development Goals of the 2030 Agenda, providing a comprehensive framework for action for the definition of more sustainable food security and agricultural systems. As a signatory to the United Nations Global Compact Principles, we are committed to aligning our policies, actions and objectives with the Sustainable Agriculture and Business Principles and disclosing our progress in conjunction with our reporting.

2 Food and Agriculture Business Principles (FAB)

PRINCIPLES OF SUSTAINABLE AGRICULTURE AND BUSINESS

FOOD SECURITY, HEALTH AND NUTRITION AS OBJECTIVES

Businesses should support food and agricultural systems that optimize production and minimize waste to provide nutrition and promote health for everyone on the planet.

PRACTICING ENVIRONMENTAL RESPONSIBILITY

Organizations should support and implement intensive agricultural systems that can meet global needs while ensuring responsible agriculture, livestock, fisheries, and forestry.
They should protect and enhance the environment and use natural resources efficiently and optimally.

ENSURING ECONOMIC VIABILITY AND SHARING VALUE

Companies must create and share value throughout the food and agricultural chain, from producers to consumers.

RESPECTING HUMAN RIGHTS, CREATING DECENT JOBS AND CONTRIBUTING TO THE PROSPERITY OF LOCAL COMMUNITIES

Businesses should respect the rights of producers, workers and consumers. They should improve their livelihoods, promote and guarantee equal opportunities, so that local communities are attractive places to live, work and invest.

FOSTERING GOOD GOVERNANCE AND ACCOUNTABILITY

Companies must behave legally and responsibly, respect land rights and natural resources, avoid corruption, and be transparent in their activities and in the recognition of their impacts.

PROMOTING ACCESS TO AND TRANSFER OF KNOWLEDGE, SKILLS AND TECHNOLOGY

Businesses should promote access to information, knowledge and skills for more sustainable food and agriculture. They must invest in developing the capabilities of small farmers and SMEs, as well as applying the most effective practices and new technologies.

ALLIANCES AND AWARDS

This whole context of sustainability drives us to commit ourselves to different initiatives of sustainable development, at the same time that we work together with diverse chambers and sectorial associations of the industry, for the development of our activity and to promote the responsible growth of the communities and of the businesses.

We participate in 20 initiatives for
the co-creation of economic, social
and environmental value in pursuit
of sustainable agriculture

Best Corporate Social Report in Argentina

At the 11th edition of the Ecumenical Social Forum, Profertil received the award for Best Corporate Social Report
in Argentina for its 2019 Sustainability Report. The Ecumenical Social Forum has been awarding these distinctions since 2002. The objective is to recognize those companies that demonstrate ethical behavior and benefit the community. It has juries and evaluation committees made up of experts, professors, leaders, cultural personalities and representatives of different religious creeds.

Profertil received four Eikon awards for communication excellence

In a special edition of the Eikon Awards, Profertil was recognized for four of its initiatives carried out between 2019 and 2020. The ceremony was broadcast via streaming and was attended by the prestigious jury that every year defines the winners of this historic communicational award, as well as representatives of the winning companies. Profertil received the Gold Eikon in the Sports Sponsorship category for the communication work carried out in the Three Wise Men Circuit 2020. In addition, it received the Silver Eikon for the Punto Profertil, initiative, which during 2019 distributed vegetable garden kits throughout the city, thus encouraging each family to become creators of vegetable gardens. This case was recognized in the General Campaign for Sustainability category, one of the most important of the evening. Of the 2020 initiatives, the Eikon Awards recognized the Vegetable Garden Program, and the celebration of the Journalist’s Day, both in its #QuedateEnCasaedition. In the first case, it is the new level of the vegetable garden workshops that Profertil has been carrying out for more than five years and that during the pandemic had to be redesigned to be 100% virtual. Thus, it allowed dozens of teachers from the city and the area to be trained in the exciting subject of urban vegetable gardens. The second case was the celebration that, also during the pandemic, the Company organized to entertain journalists from Bahía Blanca. It took place through a virtual event, which included a visit from science journalist Nora Bär, as well as recreational activities and home catering. Both cases received the Blue Eikon, the third place in the respective categories.

Profertil received an award from CEADS for its program Creciendo en Comunidad (Growing in community)

The Consejo Empresario Argentino para el Desarrollo Sostenible (CEADS, Argentine Business Council for Sustainable Development) recognized the Creciendo en Comunidad Profertil program for its contribution to the Sustainable Development Goals (SDGs), more specifically for its contribution to SDG 11 “Sustainable Cities and Communities”. Designed by CEADS and EY Argentina, these awards are part of the program “Connecting companies with SDGs”. Their objective is to make innovative initiatives visible at the local level of CEADS member companies that contribute to the Sustainable Development Goals (SDGs), with the aim of understanding where efforts are heading

in the development of the national adaptation of the Agenda towards 2030. The Creciendo en Comunidad (Growing in Community) program is an initiative of Profertil that seeks to generate a space for learning, development and dialog with social institutions of Ingeniero White and Bahía Blanca, for the strengthening of local organizations. This initiative contributes to Goal 11 set by the UN as it promotes participatory management and encourages the development of institutional projects for the well-being of the community. This distinction is for Profertil, and for each of the institutions that participate in the Creciendo en Comunidad program, an incentive to keep coordinating efforts and finding joint innovative solutions that ensure sustainable development.

3.2

STAKEHOLDERS

We also identify and classify our stakeholders based on the AA1000SES accountability guide. Afterwards, we define the steps to follow regarding the dialog with the different groups. Through different
communication channels and qualitative and quantitative methodologies quantitative methodologies, we gather information about your needs and expectations, which are then processed and reported. These are presented to the Management Team for decision making, where these steps are defined.

STAKEHOLDERS

WHO MAKE THEM UP

MAIN LISTENING TOOLS

MAIN TOPICS ADDRESSED

MAIN RESULTS 2020

OTHER COMMUNICATION AND DIALOG TOOLS

STAKEHOLDERS

Shareholders

WHO MAKE THEM UP

YPF S.A. and Nutrien Inc.

MAIN LISTENING TOOLS

Quarterly meetings of Profertil’s  Board of Directors and the Management Team.

MAIN TOPICS ADDRESSED

The main issues of each management that affect the Company’s performance are discussed.
The evolution of the annual and five-year strategic plans is also reviewed.

MAIN RESULTS 2020

Approval and level of fulfillment of annual corporate objectives presented by the Management Team

OTHER COMMUNICATION AND DIALOG TOOLS

– Institutional web page
– Social Media
– Sustainability Report

STAKEHOLDERS

Employees

WHO MAKE THEM UP

All staff working in a dependent relationship, regardless of category, area or function.

MAIN LISTENING TOOLS

Climate and Engagement Survey Communication Meetings

MAIN TOPICS ADDRESSED

Organizational climate, commitment, belonging, leadership, health and safety conditions, sustainability and future projects, among others

MAIN RESULTS 2020

2 surveys were conducted during the year. The Commitment question obtained a percentage of favorability of 87% and 91% respectively.

OTHER COMMUNICATION AND DIALOG TOOLS

– Qualitative study
– Focus group (2017)
– Intranet (Pronet)
– Internal magazine
– Bulletins and mailing
– Videos -Billboards
– Institutional web page
– Social media
– Sustainability Report

STAKEHOLDERS

Suppliers

WHO MAKE THEM UP

All business partners that make up our supply chain, both suppliers of goods or services as well as people who perform tasks within our facilities.

MAIN LISTENING TOOLS

– Systematic quantitative survey.
Sample: 200 cases. Conducted since 2005

MAIN TOPICS ADDRESSED

General perception of the Company, expectations about the way of linking, communication channels and required information

MAIN RESULTS 2020

The surveyed vendors qualified Profertil, on average, with 9.2 for transparency in negotiations and 8.3 as a company generating economic benefit (on a scale of 1 to 10).

OTHER COMMUNICATION AND DIALOG TOOLS

– Qualitative study
– In-depth interviews (2005)
-Qualitative study
Focus Group (2014)
– Web: www.checkpagos.com.ar
– Institutional web page
– Social media
– Sustainability Report

STAKEHOLDERS

Clientes

WHO MAKE THEM UP

All our clients and business partners who collaborate with our wholesale, retail and foreign trade distribution channels.

MAIN LISTENING TOOLS

Annual systematic quantitative survey of the Distributors segment
Sample: 70 cases
(conducted since 2002)

Annual systematic quantitative survey of the National Accounts segment. Sample: 35 cases. Conducted since 2002

MAIN TOPICS ADDRESSED

Customer satisfaction in this segment, main brand attributes, strengths and improvement opportunities

Customer satisfaction in this segment, main brand attributes, strengths and improvement opportunities.

MAIN RESULTS 2020

Customers in the Distributor segment gave Profertil an average rating of 8.6 for product quality; 9 for “company that can be trusted, that I believe in” and 8.8 for “company that delivers what it promises” (on a scale of 1 to 10) MAIN RESULTS 2020

OTHER COMMUNICATION AND DIALOG TOOLS

– Qualitative study In-depth interviews (2005) In-depth interviews (2005)
– Application mits (technical workshops)
-Field workshops
-Profertil Excellence
-Technical Bulletins -Web portal
– Dissemination of technical information in specialized magazines of the sector
– Institutional web page
– Social media
– Sustainability Report

STAKEHOLDERS

Agricultural producers and technical counselors (final client)

WHO MAKE THEM UP

The agricultural producers with whom we work throughout the country.

MAIN LISTENING TOOLS

Annual systematic quantitative survey. Sample: 200 wheat and corn producers in the whole country. Conducted since 2002

MAIN TOPICS ADDRESSED

Use of fertilizers, degree of adoption of good practices and technology, profile of Argentine producers, difficulties they face in their daily work and general perception of the Company.

MAIN RESULTS 2020

Agricultural Producers gave an average rating of 8.1 of 8.1 for Profertil’s quality and 7.7 for “Promotes and trains on the proper use of its products” (on a scale of 1 to 10).

OTHER COMMUNICATION AND DIALOG TOOLS

-Qualitative study In-depth interviews (2005)
-Technical bulletins
-Program El Triguero 2.0
-Program Maicero
-Application kits (technical seminars)
-MITing
-Field days
-Specific web page with virtual library
-Dissemination of technical information in specialized sector magazines
-Sustainability Report
-Mass media advertising campaigns aimed at the agricultural sector
-Agribusiness congresses: A todo Trigo, Congreso Maizar; Congreso AAPRESID, Congreso Aacrea (Every 4 years); Simposio Fertilizar (Every 2 years), Congreso Argentino de Ciencias del Suelo.
– Institutional web page
– Social media
– Sustainability Report

STAKEHOLDERS

Local community

WHO MAKE THEM UP

The community of Bahía Blanca and Ingeniero White, in addition to the civil associations with which we interact.

MAIN LISTENING TOOLS

Annual quantitative survey of RSE perception in Ingeniero White.
Sample: 200 cases with representative quotas of gender and age.

Annual Quantitative Survey in the Bahia Blanca Community
Sample: 400 cases with representative quotas of gender and age. Conducted since 2000

MAIN TOPICS ADDRESSED

Percepción sobre el compromiso con la comunidad de la Empresa y expectativas sobre el modo de vinculación y difusión de información

General perception of the Company, quality of life, interests and expectations of the neighbors, information available to the population.

MAIN RESULTS 2020

79.5% of the residents of Ingeniero White surveyed consider that Profertil is a company close to the to the community, accessible and open to dialog

OTHER COMMUNICATION AND DIALOG TOOLS

– Qualitative study. Focus Group (2002, 2011 y 2016)
-Growing in Community Program
-Project Board
-Advertising campaigns “La Tierra Tira” and “Consejos para tu huerta”
-Plant visit program
-Dissemination of non-advertising information in the mass media (press releases, journalistic interviews, non traditional advertising, etc.)
– Institutional web page
– Social media
– Sustainability Report

STAKEHOLDERS

Society

WHO MAKE THEM UP

General population of Argentina, from cities where Profertil does not have facilities.

MAIN LISTENING TOOLS

Annual quantitative survey of National Public Opinion. Sample: 800 cases. 40% AMBA, 60% main cities of the country. Conducted since 2020

MAIN TOPICS ADDRESSED

Degree of environmental awareness of the population, perception about the agricultural sector and fertilizers, level of of knowledge and image of the Company

MAIN RESULTS 2020

31% of the Argentines surveyed said that they take environmental care into account in almost all their daily decisions and 55% said that they do so on many occasions
On the other hand, respondents assigned an average rating of 6.4 6.4 to Profertil in terms of in terms of leadership

OTHER COMMUNICATION AND DIALOG TOOLS

-Advertising campaigns “La Tierra Tira” and “Consejos para tu huerta”
-Plant visit program
-Dissemination of non-advertising information in the mass media (press releases, journalistic interviews, non traditional advertising, etc.)
– Institutional web page
– Social media
– Sustainability Report

STAKEHOLDERS

Public authorities

WHO MAKE THEM UP

Municipal, regional, provincial and national public authorities.

MAIN LISTENING TOOLS

Annual systematic quantitative survey. Sample: 50 public officials from different fields. Conducted since 2012

MAIN TOPICS ADDRESSED

General perception of the Company, expectations about the way of linking, communication channels and required information

MAIN RESULTS 2020

The public authorities surveyed assigned an average score of 8 to the sentence “Profertil is a leading company” (in a 1 to 10 scale)

OTHER COMMUNICATION AND DIALOG TOOLS

– Qualitative study
In-depth interviews (2012)
-Guided tours to the plant, especially for public authorities.
-Advertising campaigns in mass media
-Guided Plant Visits, special for public authorities
-Advertising campaigns in mass media
-Institutional Web page
-Mass media
-Sustainability Report

STAKEHOLDERS

Business and agricultural sector institutions

WHO MAKE THEM UP

Organizations through which we enhance our growth and our commitment to sustainable development.

MAIN LISTENING TOOLS

Annual systematic quantitative survey. Sample: 50 representatives from institutions. Conducted since 2006

MAIN TOPICS ADDRESSED

General perception of the Company, expectations about the way of linking, communication channels and required information

MAIN RESULTS 2020

Representatives of business and institutions and the agricultural sector rated Profertil an average of 9.2 for the company’s an average of 9.2 for the company’s importance to the country, 8.9 for leadership and 8.2 for innovation (on a scale of 1 to 10).

OTHER COMMUNICATION AND DIALOG TOOLS

– Qualitative study
In-depth interviews (2006)
– Periodic meetings
– Technical Bulletins
– Presence at congresses and events in the sector
– Advertising campaigns in the mass media media
– Institutional Web Page
– Social media
– Sustainability Report

STAKEHOLDERS

Mass media

WHO MAKE THEM UP

General press, specialists in agribusiness.

MAIN LISTENING TOOLS

Annual systematic quantitative survey. Sample: 85 local and national journalists. Conducted since 2006

MAIN TOPICS ADDRESSED

General perception of the Company, expectations about the way of linking, communication channels and required information

MAIN RESULTS 2020

81% of the journalists surveyed said they were satisfied or very satisfied with the accessibility of Profertil’s contact persons

OTHER COMMUNICATION AND DIALOG TOOLS

– Qualitative study In-depth interviews (2006)
-Guided Visits Program for journalists
-Meetings and outreach actions
-Direct communication through press releases
-Advertising campaigns in mass media
– Journalist’s Day Celebration
– Institutional web page
– Social Media
– Sustainability Report

STAKEHOLDERS

Academic and teaching institutions in the agricultural sector

WHO MAKE THEM UP

Academic institutions at all levels and in particular those linked to the agricultural sector.

MAIN LISTENING TOOLS

Systematic quantitative survey. Sample: 50 teachers of careers related to the agricultural sector from different universities in the country. Conducted since 2013

MAIN TOPICS ADDRESSED

General perception of the company and its products, expectations about the way of linking and required information

MAIN RESULTS 2020

Teachers linked to the agricultural sector rated the quality of Profertil’s product an average of 8.2. (In a 1 to 10 scale).

OTHER COMMUNICATION AND DIALOG TOOLS

– Qualitative study In-depth interviews (2013)
-Dissemination of technical information in specialized sector magazines
-Technical bulletins
-Program El Triguero 2.0 and Maicero in the Youtube ProfertilAgro channel
-Application Mits (technical seminars)
-Field days
-Web: specific www.profertilnutrientes.com.ar, with virtual library
-Presence in Congresses of the sector
-Sending newsletters systematically from 2015
– Institutional web page
– Social Media
– Sustainability Report

On an ongoing basis, we carry out activities with internal and external groups, such as individual meetings, opinion studies, surveys and focus groups. The main focus is to know the expectations of each stakeholder, to generate lines of action and to respond, as far as possible, to the requirements and needs of each. The results serve as feedback for the management of our daily activities, a process in which
the different areas of the Company and the Board itself participate. The analysis of the information and the

data set are considered when approving the annual management plans. In analyzing relevant topics, we also use the comments received from the different stakeholders to include them in this Sustainability Report.

On the other hand, the Integrated Communications Strategy, was designed, from which it was defined to focus all our communication to all stakeholders. The objective is to lead the dissemination of contents related to sustainability, both on the use of our products and in the Plant’s operations. In this sense, all the surveys conducted addressed sustainability issues in order to know the degree of environmental awareness of each of the stakeholders and thus be able to work to disseminate the concepts in greater depth according to the information gathered.

Over the years, we have consolidated a structured, systematic, orderly and periodic dialog, which allows us to obtain a real perception of the environment, to provide feedback on communication strategies and to strengthen ties.

www.profertil.com.ar

0800 222 8732 (UREA)
0800 666 7763 (Commercial Line)

@profertilagro

0
FOLLOWERS
0
FOLLOWERS
0
REPRODUCTIONS
0
FOLLOWERS
0
FOLLOWERS

3.3

ABOUT THE REPORT AND THE RELEVANT ISSUES

This Report was prepared in accordance with the Global Reporting Initiative (GRI) Standards, which is an essential option.
With it, we also comply with the requirement of the United Nations Global Compact, to communicate the progress with respect to the ten principles promoted by this initiative, through the Communication on Progress (COP), as well as our Principles of Sustainable Agriculture and Business progress.

This is our 10th Sustainability Report and it communicates the Organization’s performance during the period from January 1 to December 31, 2020. At the end of the Report there is a GRI content index, with reference to the Global Compact Principles and the Sustainable Development Goals (SDGs).

For comments, suggestions or queries regarding this document or its contents, please contact us at: rse@profertil.com.ar

To define the relevant issues to be communicated in this document, the Global Reporting Initiative guidelines were followed. The aspects and issues, described below, have been determined as material to Profertil S.A., with no other companies controlled or significantly influenced by it. For this Report, we conducted a survey to update the relevant issues, which included the participation of 450 cases, among the neighboring community, suppliers, clients distributors, agricultural producers, employees, agricultural teachers, journalists, business and sector institutions, and public authorities. In previous reports, the importance of the issues was revealed through the annual institutional image surveys. The following results were obtained from this update, applied in March 2021:

GRI 102-45, 102-46, 102-47, 102-50,
102-53, 102-54, 102-56, 103-1